MAJOR PROJECT REPORT

ON

“CUSTOMER SERVICE QUALITY AT KCC BANK

Submitted for partial fulfillment of requirement for the award of degree

Of

Master of Business Administration

Of

PUNJAB TECHNICAL UNIVERSITY (P.T.U.)

JALANDHAR (PUNJAB)

Session 2018 - 2020

Supervision By :- Submitted by:-

Dr. Neha Sushant Moza

Department :- MBA Rollno:1817732

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 DECLARATION

I hereby Mr. Sushant moza University Roll No. 1817732 declare

that I have done the report on the topic A study on CUSTOMER
SERVICE QUALITY AT KCC BANK which is submitted in partial
fulfillment for the requirement of the degree of Master of Business
Administration. The Data presented in the report is pure. The assistance
and help that received during the course of this investigation has been
duly acknowledged. It is further declared that it has on original piece of
work and it is worthy of the consideration for the degree of M.B.A.

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 ACKNOWLEDGEMENT

At this point, I would like to place a record my deep sincere sense of gratitude to those entire esteemed
person who’s direct or indirect co-operation and efforts have led to the complete of this report.

It is my proud on record my sincere thanks to my esteemed advisor Asst. Prof. Dr. Neha mam, for her
continuous keen interest and providing me expert guidance; invaluable suggestion as well as constructive
criticism and inspiration from the inception to the completion of this study, without it would not have been
successfully completed.

I would also like to thank all the respondents who honestly answered the questions asked to

them. Thanking you

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EXECUTIVE SUMMARY

I have done my Project Research from THE KANGRA CENTRAL COOPERATIVE BANK Branch SANSAL´.
During my Project Research I implemented many concepts of marketing in the real life situation. This project work
helped me to apply theoretical knowledge into practical aspects on collected data which was a worthy experience and
during the discussion with company guide I realized that how important the project report is for the company and me.
I also realized how teamwork, goal orientation and managing interpersonal relationships are integral part of
professional life; therefore this will definitely help me to develop qualities required for executive. In addition, I
understood products of my company and its targeted customers. Also I got information what are the basic categories
of bank products. The customers which were not aware about the scheme says that KCC bank should improve their
promotional area through different media like T.V. radio. Print media, PR and through IMC (Integrated Marketing
Approach) and most of them votes for IMC. More than 80% of the customers were satisfied with location and
condition of the Bank and more than 50% were satisfied with the process of disbursement, but maximum of the
customers were dissatisfied with the behavior of the employees, they give suggestions to that the KCC Bank
employees should change and improve their behavior towards their customers, from my findings I found that this
behavior of employees is due to daily routine work load from which they got stressed. I recommend the bank to
change the location of the employees from one branch to another and give them more and more incentives and also to
employ more employees from which work load gets less and the employees will not feel any pressure and they will
not feel any stress. Most of the customers choose KCC Bank because of simple procedures and more number of
branches and the interest rates regarding their business was suitable according to them. Most of the customers rank
good about KCC bank My research is conducted to find out “CUSTOMER SERVICE QUALITY OF
KCC BANK”

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TABLE OF CONTENT

PARTICULARS PAGE NO.

CHAPTER 1-INTRODUCTION 7-13

1.1 Company Introduction 8

1.2 Company Profile 9-13

CHAPTER 2-REVIEW OF LITERATURE 14-16

CHAPTER3-SCOPE,OBJECTIVES AND
LIMITATIONS OF STUDY 17

3.1 Scope of the study 17

3.2 Objectives of the study 17

3.3 Limitations of the study 17

CHAPTER4-SERVICE QUALITY OF KCC BANK 17-22

4.1 Introduction of service quality of bank 18-19

4.2 RATER model 20

4.3 Dimensions of service quality 20-22

CHAPTER 5-RESEARCH METHODOLOGY 23-26

5.1 Identification of problem 24

5.2 Research design 25
5.3 Research instrument 25
5.4 Sample design 26
5.5 sample size 26
5.6 Data source and data collection 26
5.7 relevance of the study 26
CHAPTER 6- DATA ANALYSIS AND 27-52
INTERPRETATION
CHAPTER 7- FINDINGS AND SUGGESTIONS 53-54
7.1 Findings 53
7.2 Suggestions 54

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CHAPTER 8- CONCLUSION 55-56
REFERENCES AND 57-58
BIBLOGRAPHY
ANNEXURE 59-61

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CHAPTER -1: INTRODUCTION

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1.1 COMPANY INTRODUCTION:
Came into existence on 17th March 1920 (License No. RPCD.09/2009-10).Indora Banking Union
was merged and 2nd Branch of the Bank opened at Nurpur in Jan’1956.Palampur Banking Union
was merged and 3rd Branch of the Bank opened at Palampur in Jan’1957.Nanaon Banking Union
was merged and 4th Branch of the Bank opened at Hamirpur in Oct’1958.The Bank suffered
losses because of the partition in 1947 to the tune of Rs.10.64 Lacs. In Mar 1962, the bank
suffering from the setback of partition was granted Rs.4.09 Lacs by the Govt. Govt also provided
Interest Free Relief Loan of Rs.3.98 Lacs and Govt of India Loan of Rs.4.97 Lacs @ 3.87% in
1962 In 1971- 72.The Bank entered into the deposit mobilisation scheme of Pong Dam Area
aggressively and secured maximum share of Deposit Bank Deposits increased from Rs. 256 Lacs
in 1971-72 to Rs. 1054 Lacs in 1973-74.

Corporate Tie-up

“ Sometime we have to reach out in new directions in order to change and grow"

Life Insurance Companies:

* Life Insurance Company of India Ltd.
* DHFL Pramerica Life Insurance Co.
* Bajaj Allianze Life Insurance Co
General Insurance Companies:
* National Insurance Company Ltd.
* Bajaj Allianz General Insurance Company Ltd.
Health Insurance Companies
* Religare Health Insurance Company Ltd.

Honda
Bank has entered into an MOU with Honda Motors for financing Motor Cycles

Tata Motors
Bank has entered into an MOU with Tata Motors for financing Tata Vehicles

AXIS, KCC and ICICI Bank

The Bank has also corporate tie-up with AXIS, KCC and ICICI Bank for remittance and collection
purposes

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1.2 COMPANY PROFILE:
The Kangra Cooperative Bank Ltd. started in a very humble way as a
small Thrift/Credit Society in March, 1960 by a few friends of Distt.
Kangra of Himachal to help out the people of Himachal residing in Delhi
to uplift their economic conditions and tide over the financial hardships.
Dedication, sincerity and honesty of these members/associates brought rich
fruits and this Thrift/Credit Society grew up into a big society within
twelve years after its formation and successful running was converted into
a primary urban Cooperative Bank in 1972 by RBI and was permitted to
carry out banking activities including acceptance of deposits from public
(non-members) by opening their Saving, Current and RD A/c’s. Twenty
three years there from in June 1995 it was granted a license to carry out
the banking business by the Reserve Bank of India . Thereafter, it was
granted license to open branches and consequently eight more branches
were added in February, May, December 1996, June 1998 ,October 2008,
July 2009 , April 2014 and the last one in July 2014. In may 1970 it
purchased Paharganj building and reconstructed the same in 1993. In
october, 1997 it purchased the present premises at Janakpuri to set up
administrative, arbitration and recovery department and HO. Central
accounts and Personnel department are functioning from this building. It
has a meeting room. One branch also function here. The main branch
along with its service branch, is situated in its own three storied building at
Paharganj. It purchased another Building in April 2008 At Jagatpuri where
its one of the existing Branches has already been functioning.It has a board
meeting room. The latest audited financial position of the bank as on
31st March, 2017 is as follows:-

Membership 41459
Clientele other than members 136594
Share money 31.08 crores
Reserve/Other funds 62.61 crores
1046.57
Working Capital
crores
924.22
Deposits
crores
493.40
Advances
crores
Net Profit Before Tax 14.16 crores
Net Profit After Tax 9.58 crores
Net
2.19%
NPA

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 CRAR 12.51%

Bank enjoys Grade ‘A’ audit classification since long. Govt. of NCT of Delhi gave to the Bank "Best Bank
Award" for the years 2004-05, 2007-08, 2009-10 and 2011-12.
AGBM and elections, audit etc are held on regular intervals. Bank is giving dividend to its Share-holders
regularly and lastly declared @ 18% the highest declared/paid so far. Bank has also introduced three
schemes of welfare nature for its shareholders . First one is If from the membership of the Bank existing as
on 31.12.2013, any member dies, his nominee will be given a death grant of Rs. 25000/- from Member
Welfare Scheme and if he has taken any loan, then loan amount up to Rs. 75000/- will be exempted from
interest. Any member enrolled after 31.12.2013 if dies before attaining a membership of ten years, his
nominee will be given a death grant of Rs. 15000/- from Member Welfare Scheme and loan up to Rs.
50,000/-, if taken, will be exempted from interest.Any member enrolled after 31.12.2013 if dies after
completing membership of ten years, his nominee will be given a death grant of Rs. 25000/- from Member
Welfare Scheme and loan up to Rs. 75000/-,if taken, will be exempted from interest, the second one is
where scholarship @ Rs.150/- and Rs.200/- per month is given to the brilliant wards of the members and
staff and the the third one is to give one time incentive to those wards of members / staff who get 90 %
marks in Board examination. Amount of incentive is Rs.3100/- and Rs.5100/- for 10th and 12th class
respectively.

All the branches are fully computerized with CBS. The implementation of CTS, NEFT/RTGS, ATM have
already been done .Board of Directors has also prepared a “Vision Document” for 2014-15 to 2016-17
according to which various targets have been fixed.

Membership has been planned upto 41000

Efforts will be made to maintain the highest percentage of dividend
Clientele 1.40 lacs
Share Money upto 30 crores
Deposits to increase 850 crores from 548 crores
Advances to increase 560 crores from 355 crores.
To increase working capital from Rs. 635 cr. to Rs. 1000 cr.
To increase the Net Worth of the bank to Rs.55 crores
ATM Card Holders Upto 15000
To purchase two buildings
To be eligible for scheduled status
To computerize HO and CRD
To open two branches.
To strengthen HO working
To get "A" RBI inspection rating

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 To hold minimum two customer meetings in a year, six in three years in different parts
To open onsite ATMs in all branches
To make customer service quick and satisfactory
To arrange minimum two lectures in a year on important topics such as investments,
NPA, customer service, credit appraisal, KYC norms, CRAR, ALM, Internal Control,
Profitability etc.
To maintain net NPA 0% and gross NPA not more then 4.5%

All the branches of the bank remain open for six days a week with full day banking service on Saturday.
For the convenience of its customers it is having agency arrangement with KCC Bank which enables the bank
to issue Demand Drafts on KCC branches across the country, to arrange collection of out-station cheques
within a week or ten days. Bank is also maintaining C-SGL A/c with KCC and also participate in the non-
competitive bids of RBI for the purchased of Govt. Securities.

For its employees bank has introduced several good schemes like cover of mediclaim insurance, covering
expenses upto 3.00 lacs requiring hospitalization of the employee, his or her spouse & upto two childrens.
Facility of housing loan upto fifty lacs is also available for the staff.

It has in place well defined service rules which ensures career growth to its employees. It also celebrates
annual day in which awards for best branch, workers etc. are also given.

In order to improve the knowledge of the staff guest lectures are also arranged on important topics related to
the banking activities from time to time.

1.2.1 BUSINESS FOCUSES:

KCC Bank's mission is to be a best cooperative Bank. The objective is to build sound customer
franchises across distinct businesses so as to be the preferred provider of banking services for
target retail and wholesale customer segments, and to achieve healthy growth in profitability,
consistent with the bank's risk appetite. The bank is committed to maintain the highest level of
ethical standards, professional integrity, corporate governance and regulatory compliance. KCC
Bank's business philosophy is based on four core values - Operational Excellence, Customer
Focus, Product Leadership and People.

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1.2.2 MISSION STATEMENT OF KCC BANK

To emerge as the most trusted, admired, sought after world class financial institution, and to be the
most preferred destination for every customer and investor and a place of pride for its employees.

1.2.3 VISION STATEMENT OF KCC BANK

To be a top- class Bank of its class to achieve sustained growth of Business and Profitability,
fulfilling socio-economic obligations, excellence in customer service, through up gradation of
skills of staff, their effective participation and making use of state-of-the–art – technology.

1.2.4 BUSINESS STRATEGY

 Increasing market share in India’s expanding banking
 Delivering high quality customer service
 Maintaining current high standards for asset quality through disciplined credit risk
management
 Develop innovation products and services that attract targeted customer and address
inefficiencies in the Indian financial sector.

1.2.5 SERVICES OFFERED

 Deposit Product

 Loan Product

 Service Product

Deposit Product
Saving Product Interest Type Payable Frequency

Saving Bank Account Compounded Half Yearly

Fixed Deposit Simple Monthly/Quarterly/Half Yearly/On Maturity

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Term Deposit Compounded Monthly/Quarterly/Half Yearly/On Maturity

Recurring Deposit Compounded Monthly

In case of Fixed Deposit Schemes, the customer has the option to withdraw the Interest Amount as per the agreed frequency. In case
of Term Deposit & Recurring Deposit Schemes the Total Matured Amount will be payable on maturity only with a option to
discontinue the Deposit subject to penal clauses.

Loan Products
Co-Op. Socities Individuals

Agriculture Agriculture

Non Farm Sector Non Farm Sector

Personal Vehicle Personal Vehicle

Weavers/Industrial/Housing Housing

Cash Credits Cash Credits

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CHAPTER-2: LITERATURE REVIEW

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Vinita Kaura, (2013): examined the effect of service quality in various private banks.
Thedimensions of service quality are employee behavior, tangibility and information technology.
Dimensions of service convenience are decision convenience, access convenience, transaction
convenience, benefit convenience and post‐benefit convenience. For public sector banks, except
tangibility, all antecedents have positive impact on customer satisfaction. For private sector banks
except tangibility and benefit convenience all antecedents have positive impact on customer
satisfaction. Significant difference in beta coefficient is found between public and private sector
banks regarding employee behavior, decision convenience, access convenience and post‐benefit
convenience.
Research limitations/implications
– This study has taken into account a specific category of retail banking customers. Thus, it limits
generalization of results to other banking populations.
Practical implications
– This study highlights the importance of service quality, service convenience and price in
satisfying customers. Bank managers can focus on these factors to satisfy customers.
Originality/value
– The paper emphasizes the significance of service quality, price and SERVCON on customer
satisfaction for Indian banking sector. It compares the multiple regression models for public and
private sector banks.

Study was done on impact of service quality in commercial banks on the customer satisfaction an
empirical study (Oct, 11): the objective of this study is to understand the various customers’
perception about the service quality factors and satisfaction level towards the banks. Survey
method, data collection from the customer based on various demographics like rural –urban area,
education standards, income level, occupation deference, age groups etc. outcomes are the
existence of close bond between the services quality factors and customer satisfaction level .the
impact of service quality factors o customer’s satisfaction varies with the demography of the
customer.

Kumbhar, Vijay (2011): Service quality perception and customers’ satisfaction in internet banking
service. Present research is based on empirical evidences collected through the customers’ survey
regarding to the customers perception in internet banking services provided by public and private
sector banks. It is efforts to examine the relationship between the demographics and customers’
satisfaction in internet banking, relationship between service quality and customers’ satisfaction as
well as satisfaction in internet banking service provided by the public sector bank private sector
banks. Present research shows that, demographics of the customers’ are one of the most important
factors which influence using internet banking services. Overall results show that highly educated,
a person who are employees, businessmen and belongs to higher income group and younger group
are using this service, however, remaining customers are not using this services. Results also show
that overall satisfaction of employees, businessmen and professionals are higher in internet
banking service. There is significant difference in the customers’ perception in internet banking
services provided by the public and privates sector banks. Private sector banks are providing better
service quality of internet banking than service provided by the public sector banks. Therefore,
public sector banks should improve their internet banking services according to the expectations of
their customers.

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Avinandan Mukherjee &Prithwiraj Nath (2006):- The role of trust encompasses the exchanges and
interactions of a retail bank with its customers on various dimensions of online banking.
Specifically lays stress on the bank‐to‐customer exchanges taking place through the technological
interface. Hypothesizes shared value, communication and opportunistic behavior as antecedents to
trust. Trust and commitment also have a causal relationship. Proposes and empirically tests five
hypotheses with a sample of 510 Internet users of various profiles in India. Develops a structural
equation model (Lisrel) and establishes all hypotheses. Observes that shared value is most critical
to developing trust as well as relationship commitment. Communication has a moderate influence
on trust, while opportunistic behavior has significant negative effect. Also finds higher perceived
trust to enhance significantly customers’ commitment in online banking transaction. An important
contribution concerns how trust is developed and sustained over different levels of customer
relationship in online banking. The future commitment of the customers to online banking depends
on perceived trust

Kumar, S Arun; Mani, B Tamil; Mahalingam, S; Vanjikovan, M. (2010): This paper examines the
service quality dimensions of Indian private banks dealing with retail banking. Overall service
quality level acts as an antecedent for customer satisfaction. The factors extracted give perceived
service quality dimensions which correlate with overall attitudinal loyalty. Overall service quality
further tested for any significant relationship with attitudinal loyalty, which is considered to be an
important component of retaining valued customers. The data has been collected from 100 valued
customers of two private retail banks of Tiruchirapalli. A questionnaire elicited information on
socio-demographic variables along with SERVQUAL dimensions of service quality added with
three extra contemporary validated variables and attitudinal loyalty variables. The results suggest
that responsiveness and reliability of service quality dimensions determine customer satisfaction
more than the assurance, empathy and tangible aspects (SERVQUAL score analyzed using Factor
Analysis and Multiple Regressions). Overall perceived service quality fosters customer’s
attitudinal loyalty through latent customer satisfaction (Tested using Chi-Square Statistics and
Correlation Analysis). Increase in service quality of the banks can satisfy and develop attitudinal
loyalty which ultimately retains valued customers.

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 CHAPTER-3: SCOPES AND
OBJECTIVES OF THE STUDY

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3.1 SCOPE OF THE STUDY:
The scope of this research is to identify the service quality of KCC bank. This research is based on
primary data and secondary data. This study only focuses on the dimensions of service quality i.e.
RATER. It aims to understand the skill of the company in the area of service quality that are
performing well and shows those areas which require improvement. The study was done taking
two branches of KCC bank into consideration. The survey was restricted to the bank customers in
Baijnath only.

3.2 OBJECTIVES OF THE STUDY:

The main objective of this project is to create a frame work of service quality to be provided by the
organization.
Objective details are mentioned below:

 To examine the essential dimensions of service quality i.e. RATER-Reliability, assurance,

tangibles, empathy and responsiveness of KCC Bank and its effect on customer’s
satisfaction.
 To find out the level of perception of the customers from the service quality offered by the
bank.
 To identify the dimension of service quality needs improvement so that the quality of
service of KCC bank is enhanced.

3.3 LIMITATION OF THE STUDY:

 The study is only for the KCC Bank confined to a particular location and a very small
sample of respondents. Hence the findings cannot be treated as representative of the entire
banking industry.
 The study can also not be generalized for public and private sector banks of the country.
 Respondents may give biased answers for the required data. Some of the respondents did
not like to respond.
 Respondents tried to escape some statements by simply answering “neither agree nor
disagree” to most of the statements. This was one of the most important limitations
faced, as it was difficult to analyze and come at a right conclusion.

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CHAPTER-4: SERVICE QUALITY OF
KCC BANKS

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4.1 INTRODUCTION TO SERVICE QUALITY IN BANKS:

In the days of intense competition, the banks are no different from any other consumer marketing
company. It has become essential for the service firms in general and banks in particular to identify
what the customer's requirements are and how those customer requirements can be meet
effectively. In the days where product and price differences are blurred, superior service by the
service provider is the only differentiator left before the banks to attract, retain and partner with the
customers. Superior service quality enables a firm to differentiate itself from its competition, gain
a sustainable competitive advantage, and enhance efficiency .The benefits of service quality
include increased customer satisfaction, improved customer retention, positive word of mouth,
reduced staff turnover, decreased operating costs, enlarged market share, increased profitability,
and improved financial performance. The construct of service quality has therefore been a subject
of great interest to service marketing researchers. Service quality has been defined by various
experts in various ways as: 'Service Quality is the difference between customers' expectations for
service performance prior to the service encounter and their perceptions of the service received.'

According to Gefan „Service quality is the subjective comparison that customers make between
the qualities of service that they want to receive and what they actually get.' Parasuraman says,
'Service quality is determined by the differences between customer's expectations of services
provider's performance and their evaluation of the services they received. Service quality is 'the
delivery of excellent or superior service relative to customer expectations‟. ‘Service quality is
determined by the differences between customer's expectations of services provider's performance
and their evaluation of the services they received. Service quality is 'the delivery of excellent or
superior service relative to customer expectations‟. Service quality is recognized as a
multidimensional construct. While the number of dimensions often varies from researcher to
researcher, there is some consensus that service quality consists of three primary aspects: outcome
quality, interaction quality, and physical service environment quality. Outcome quality refers to the
customer's assessment of the core service which is the prime motivating factor for obtaining the
services (e.g. money received from ATM). Interaction quality refers to the customer's assessment
of the service delivery process, which is typically rendered via a physical interface between the
service provider, in person, or via technical equipment, and the customer. It includes, for instance,
the consumer's evaluation of the attitude of the service providing staff. The physical service
environment quality dimension refers to the consumer's evaluation of any tangible aspect
associated with the facilities or equipment that the service is provided in/ with. It includes, for
example, the physical conditions of an ATM machine.

The most popular dimensions of service quality--features five dimensions: tangibles, reliability,
responsiveness, empathy, and assurance. The tangibles dimension corresponds to the
aforementioned physical environment aspect, the reliability dimension corresponds to the service
outcome aspect, and the remaining three represent aspects of interaction quality. Both the costs and
the revenue of firms are affected by repeat purchases, positive word-of-mouth recommendation,
and customer feedback. Moreover, there is strong evidence that service quality has either a direct
influence on the behavioral intentions of customers and/or an indirect influence on such intentions,
mediated through customer satisfaction. RATER is an instrument that might be used to define and
measure banking service quality and to create useful quality-assessment tools.

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The RATER may finally provide the following benefits to the KCC bank:

1. It is the first approach to add and mix the customers‟ religious beliefs and cultural values with
other quality dimensions.

2. It provides for multi-faced analysis of customer satisfaction.

3. It links quality with customers‟ satisfaction and service encounter.

4. It provides information at several levels, already organized into meaningful groupings.

5. It is a proven approach, which results in usable answers to meet customers’‟ needs

. 6. It is empirically grounded, systematic and well documented. Banks managers can use the

4.2 RATER model and its dimensions first to identify the following issues:

RESPONSIVENES

TANGIBILITY RELIABILITY

EMPATHY ASSURANCE

Fig 1. DIMENSIONS OF SERVICE QUALITY

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4.3 DIMENSIONS OF SERVICE QUALITY:

TANGIBILITY: This dimension deal with modern looking equipments and visual appealing part
of banks.

RELIABILITY: This dimension has a direct positive effect on perceived service quality and
customer satisfaction in banking institutions. Banks must provide error free service and secure
online transactions to make customers feel comfortable.

RESPONSIVENESS: Customers expect that the banks must respond their inquiry promptly.
Responsiveness describes how often a bank voluntarily provides services that are important to its
customers. Researchers examining the responsiveness of banking services have highlighted the
importance of perceived service quality and customer satisfaction.

ASSURANCE: Customer expects that the bank must be secured and the behavior of the
employees must be encouraging.

EMPATHY: individual attention, customized service and convenient banking hours are very much
important in today‟ s service.

In order to achieve better understanding of service quality in banking sector, the proposed five
service quality dimensions are conceptualized to illustrate the overall service quality of the
banking in relation to customers‟ and providers perspective.

Banking was in the sector featuring medium goods and higher customer producer interactions,
since in banking, consumers and service providers interact personally and the use of goods is at a
medium level. Hence, in banking, where there are high customer-producer producer interactions,
the quality of service is determined to a large extent by the skills and attitudes of people producing
the service.

In the case of services, because customers are often either direct observers of the production
process or active participants, how the process is performed also has a strong influence on the
overall impression of the quality of service. A well-performed service encounter may even
overcome the negative impression caused by poor technical quality as well as generate positive
word-of-mouth, particularly if customers can see that employees have worked very hard to satisfy
them in the face of problems outside their control. Employees are part of the process, which
connects with the customer at the point of sale, and hence employees remain the key to success at
these service encounters or “moments of truth”. It is these encounters with customers during a
service that are the most important determinants of overall customer satisfaction, and a customer‟ s
experience with the service will be defined by the brief experience with the firm‟ s personnel and
the firm‟ s systems. The rudeness of the bank‟ s customer service representative, the abruptness of
the employee at the teller counter, or the lack of interest of the person at the check deposit counter
can alter one‟ s overall attitude towards the service, perhaps even reversing the impression caused
by high technical quality.

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 Another important service quality factor, competence, is defined by whether the bank performs
the service right the first time, whether the employees of the bank tell customers exactly when
services will be performed, whether the bank lives up to its promises, whether customers feel safe
in their transactions with the bank and whether the employees show a sincere interest in solving
the customers‟ problems. In short, this dimension is related to the banks‟ ability to perform the
promised service accurately and dependably. Performing the service dependably and accurately is
the heart of service marketing excellence. When a company performs a service carelessly, when it
makes avoidable mistakes, and when it fails to deliver on promises made to attract customers, it
shakes customers‟ confidence in its capabilities and undermines its chances of earning a reputation
for service excellence.

It is very important to do the service right the first time. In case a service problem does crop up,
by resolving the problem to the customer‟ s satisfaction, the company can significantly improve
customer retention. However, companies fare best when they prevent service problems altogether
and fare worst when service problems occur and the company either ignores them or does not
resolve them to the customer‟ s satisfaction.

Performing the service accurately is perhaps the most important factor in service quality
excellence. The cost of performing the service inaccurately includes not only the cost of redoing
the service but also the cost associated with negative word-of-mouth generated by displeased
customers. In case of services, the factory is the field. Again, services are intangible and hence the
criteria for flawless services are more subjective than the criteria for defect- free tangible goods.
Hence for most services, customers‟ perceptions of whether the service has been performed
correctly, and not provider- established criteria, are the major determinants of reliability.

The service quality factor tangible is defined by whether the physical facilities and materials
associated with the service are visually appealing at the bank. These are all factors that customers
notice before or upon entering the bank. Such visual factors help consumers form their initial
impressions. A crucial challenge in service marketing is that customers cannot see a service but
can see the various tangibles associated with it - all these tangibles, the service facilities,
equipment and communication materials are clues about the intangible service. If unmanaged,
these clues can send to the customer‟ s wrong messages about the service and render ineffective the
marketing strategy of the company. On the other hand, improving quality through tangibles means
attention to the smallest details that competitors might consider trivial. Yet, these visible details
can add up for customers and signal a message of caring and competence.

Customers may reveal new aspects of service quality in banking that are important to them, and
these would have to be incorporated in the scale so as to further explore the concept of service
quality in the banking arena.

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CHAPTER-5: RESEARCH
METHODOLOGY

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5.1 IDENTIFICATION OF PROBLEM:
The project was carried out in the light to highlights the type of quality of services which are
provided by the bank to their customers .Today in this competitive world it is very important for
the sustainability in the market to provide the best quality of services to the customers and also
being different from other competitors in the market. KCC Bank is a rapidly growing private bank
and requires the strong customer base , customers loyalty towards bank, so the bank need to take
care of all the services which they provided to the customers for the overall development by
focusing on functional, behavioral and technical aspects which helps to meet the present as well as
future challenges.

5.2 RESEARCH DESIGN:

A clear definition of the problem at hand makes research design easier. The research design itself
serves as a framework for the study, guiding the collection and analysis of the data. A good
research design minimizes the damages of haphazard collection of information because it is like a
road map, which guides us where we want to go .In simple words “Research Design is the
framework or plan for a study that guides the collection and analysis of the data’’.A research
design is framework or blueprint for conducting the marketing research project.
The research design is exploratory till identification of service quality parameters. Later it becomes
descriptive when it comes to evaluating customer perception of service quality of the banks.
Although the data description is factual, accurate and systematic, the research cannot describe what
caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where
one variable affects another. In other words, descriptive research can be said to have a low
requirement for internal validity. The description is used for frequencies, averages and other
statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct
a survey investigation. Qualitative research often has the aim of description and researchers may
follow-up with examination of why the observation exists and what the implication of the findings
are.

5.3 RESEARCH INSTRUMENT:

Structured non-disguised questionnaire was used to collect data from the customers the reason for
collecting such type of questionnaire was the sake of respondents so that they find it easy to
understand the question and respond accordingly. The questionnaire consisted of closed ended
.The questionnaire consists of two parts .the first part consists of three questions concerning the
demographic information of the respondent such as name, age, educational, qualifications and
income. The second part consisting of 18 questions exploring the respondent’s perception about
the service quality of KCC bank.

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5.4 SAMPLE DESIGN:
This study is not concerned with the whole universe hence; it becomes necessary to take sample
from the universe to understand the characteristics.

 Sampling units: Customers of KCC Bank

 Sample Technique: Convenient sampling
 Research Instrument : Structured Questionnaire
 Contact Method : personal Interview

5.5 SAMPLE SIZE:

The work is a case of KCC bank, one of the biggest banks among the cooperative banks in
Himachal Pradesh.. The survey was conducted in the Baijnath in the two branches of KCC bank
i.e. Sansal & Deol branch, with 50 customers as respondent.

5.6 DATA SOURCE AND DATA COLLECTION:

Primary Data: The primary data was collected by means of a survey. Questionnaires were
prepared and customers of the banks at two branches were approached to fill up the questionnaire.
the questionnaire contains 20 questions which reflect on the type and quality of services provided
by the banks to the customers .the response of the customer and the recorded on a grade scale of
strongly disagree, disagree, uncertain, agree and strongly agree for each question. The filled up
information was later analyzed to obtain the required interpretation and the findings.
Secondary Data : In order to have understanding of the service quality of bank a depth study was
done from the various books, a lot of data is also collected from the official website of the banks
and the articles from various search engines like Google, yahoo search etc.

5.7 RELEVENCE OF THE STUDY:

The study would try to put some light on the existing service provided by the banks, perception
and the actual service quality of the bank. The results of the study would be able to recognize the
lacunae in the system and thus provide key areas where improvement is required for better
performance and success ratio. In the days of intense competition, superior service is the only
differentiator left before the banks to attract, retain, and partners with the customers. Superior
service quality enables a firm to differentiate itself from its competition, gain, a sustainable
competitive advantage, and enhance efficiency.

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CHAPTER-6: DATA ANALYSIS AND
INTERPRETATION

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27
Data Analysis has been done through tables in the Excel and representation of data has been done
through graph sheets for easy representation. The response of the customers is represented by
graphs as below:
Ques. Age

AGE CATEGORY FREQUENCY PERCENTAGE

18-23 Years 7 14
24-29 years 20 40
30-35 years 11 22
35 years and above 12 24
TOTAL 50 100

45% 40%
40%
35%
30%
25% 24%
20% 22%
15%
14%
10%
5%
0%

18-23years24-29 years30-35 years35 years and above

Fig 2.Age of the respondent

INTERPRETATION
It can be seen from the above table and graph that

 14% respondent’s age are 18-23 years

 40%respondent’s age are 24-29 years

 22% respondent’s age are 30-35 year

 24% respondent’s age are 35 years and above

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 Ques. Educational Qualification
CATEGORY FREQUENCY PERCENTAGE

UNDER GRADUATE 13 26

GRADUATE 20 40

POST GRADUATE 50 34

TOTAL 50 100

45%
40%
40%
35% 34%

30%
26%
25%
20%
15%
10%
5%
0%

undergraduate graduate post graduate

Fig 3.Education qualification of respondents

INTERPRETATION
It can be seen from the above graph that:

 26% respondent are under graduate

 40%respondent’s are graduate

 34% respondent’s are post graduate

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  TANGIBILITY DIMENSION OF SERVICE QUALITY (Question1 to 4)
Physical facilities, equipment, and appearance of personnel
Ques.1 KCC bank has modern looking equipment.
TABLE NO.1

SCALE FREQUENCY PERCENTAGE

STRONGLY 5 10
DISAGREE
DISAGREE 25 50
UNCERTAIN 16 32
AGREE 4 8
TOTAL 50
Mean = 2.38
Standard deviation=0.77

60%
50%
50%

40%
32%
30%

20%

10%
10% 8%

0%
Stronglydisagree disagree uncertain agree

INTERPRETATION
KCC Bank has modern-looking and hi-tech equipment. Here analysis shows that most of the
respondents’ disagreed with this statement. Among the total respondent 50% disagreed, 32% were
neutral, and 8% agreed. After analysis I found that majority of the respondents believes that bank
has no-hi-tech equipments.

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Ques.2. The bank’s physical features are visually appealing.
TABLE NO.2

SCALE FREQUENCY PERCENTAGE

DISAGREE 4 8

UNCERTAIN 29 58

AGREE 17 34

TOTAL 50 100

Mean=3.26
Standard deviation=0.599

70%
60% 58%
50%

40% 34%
30%
20%
10%
8%

0%
disagree uncertain agree

INTERPERTATION

KCC bank’s has physical features visually appealing. From this statement I found that17 persons
agreed, 29 persons were uncertain, 4 persons disagreed. This means 58%people were uncertain
about this statement. Out of the respondents only 8%disagreed and no one strongly agreed or
disagreed with this. 34% people agreed that KCC Bank’s has physical features visually appealing.

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Ques.3.The bank’s reception desk employees are smart appearing.
TABLE NO.3

SCALE FREQUENCY PERCENTAGE

DISAGREE 5 10
UNCERTAIN 21 42
AGREE 18 36
STRONGLY AGREE 6 12
TOTAL 50 100
Mean=3.46
Standard deviation=0.828

45% 42%
40%
36%
35%
30%
25%
20%
15%

10%
10%
6%
5%
0%

Disagree uncertain agree strongly agree

2

INTERPRETATION
KCC bank’s employees are appearing smart. Here analysis shows that majority were neutral.
Among the total respondent 21 respondent were neutral, 18 people agreed and 6 respondent
strongly agreed. The rest disagreed. From the analysis I found that some respondent agreed with
this statement but most of the respondent thinks the employees of the KCC bank appear smart.

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Ques.4.Materials associated with the service (such as pamphlets or statement) are visually
appealing.

TABLE NO .4

SCALE FREQUENCY PERCENTAGE

DISAGREE 7 14
UNCERTAIN 22 44
AGREE 18 36
STRONGLY AGREE 3 6
TOTAL 50 100
Mean=3.34 Standard deviation=0.798

50%
45% 44%
40%
35% 36%
30%
25%
20%
15%
10%
5% 14%
0%
6%

Disagreeuncertainagreestrongly agree

INTERPRETATION

Materials associated with the service are visually appealing. Here 36% respondents agreed with
this statement and 6% strongly agreed with this statement. 44% were neutral that is most and 14%
disagreed. There was no respondent who strongly disagreed. Hence, in general it can be concluded
that materials associated with the services such as pamphlets or statements are visually appealing.

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RELIABILITY DIMENSION OF SERVICE QUALITY (Questions 5 to 8):

Ability to perform the promised service dependably and accurately

Ques.5 when the bank promises to do somethingby a certain time, it does so.

TABLE NO.5

SCALE FREQUENCY PERCENTAGE

STRONGLY 2 4
DISAGREE
DISAGREE 26 52
UNCERTAIN 5 10

AGREE 14 28
STRONGLY AGREE 3 6

TOTAL 50 100

Mean=3.04 Standard deviation=1.21

60%
52%
50%

40%
28%
30%
20%
10%
10% 4% 6%

0%
Strongly disagree disagree uncertain agree strongly agree

INTERPRETATION

My sample size was 50. Here analysis shows that among the total respondents 26 respondents
disagreed and 14 respondents agreed with this question. Also I found that 5 people were neutral
and 2 people strongly disagreed. Hence I concluded that majority of them disagreed that the bank
when promises to do something by certain time, it does so.

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Ques. 6 When you have a problem, the bank shows a sincere interest in solving it.

TABLE NO.6

SCALE FREQUENCY PERCENTAGE

DISAGREE 3 6
UNCERTAIN 14 28
AGREE 26 52
STRONGLY AGREE 7 14
TOTAL 50 100

Mean=3.74

Standard deviation=0.777

60%
52%
50%

40%
28%
30%

20% 14%
10% 6%

0%
Disagree uncertain agree srrongly agree

INTERPRETATION
When you have a problem, KCC bank shows sincere interest in solving it. After analyzing this
statement I found that most of the respondents agreed i.e. 52% respondents agreed. Also I found
that 28% were neutral with this statement and 6% were committed with disagree. There was no
one who strongly disagreed. Hence KCC bank can be said to be reliable.

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Ques.7 The bank performs the service right the first time.
TABLE NO.7

SCALE FREQUENCY PERCENTAGE

STRONGLY 2 4
DISAGREE
DISAGREE 8 16

UNCERTAIN 17 34

AGREE 17 34

STRONGLY AGREE 6 12

TOTAL 50 100

Mean=3.36
Standard deviation=1.00

40%
35% 34% 34%

30%
25%
20%

16%
15% 12%
10%
5% 4%

0%
Strongly disagree uncertain agree strongly agree
disagree

INTERPRETATION
Total sample size was 50. Here analysis shows that among the total respondents 17 people agreed
with this statement. They think that KCC bank performs the services right the first time. 6 people
strongly agreed with this statement. Also 17 people were neutral and the rest of the respondents
disagreed and strongly disagreed.

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Ques.8 The bank insists on error free records.

TABLE NO.8

SCALE FREQUENCY PERCENTAGE

DISAGREE 5 10

UNCERTAIN 10 20

AGREE 23 46

STRONGLY AGREE 12 24

TOTAL 50 100

Mean=3.84

Standard deviation=0.91

50%46%
45%
40%
35%
30%
24%
25% 20%
20%
15%
10% 10%
5%
0%

Disagreeuncertainagree strongly agree

INTERPRETATION

Bank insists on error free records. KCC bank has proved from my analysis that it surely insist on
error free records as 46% respondents agreed with this statement and 24% strongly agreed. Only
10% respondents disagreed and no one strongly disagreed.

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 RESPONSIVENESS DIMENSION OF SERVICE QUALITY (Question 9 to 12):
Willingness to help customers and provide prompt services
Ques. 9 Employees in the bank tells you exactly when the services will be performed. Table no:
9
SCALE FREQUENCY PERCENTAGE

STRONGLY 6 12
DISAGREE
DISAGREE 8 16

UNCERTAIN 13 26

AGREE 18 36

STRONGLY AGREE 5 10

TOTAL 50 100

Mean=3.18 Standard deviation=1.20

40%
36%
35%

30%
26%
25%

20%
16%
15% 12%
10%
10%

5%

0%
strongly diagree uncertain agreestrongly agree
disagree

INERPRETATION

Employees in the bank tell you exactly when the services will be performed. Majority of the
respondents agreed with this statement. 26% respondents were uncertain. At the same time 16%
disagreed and 12% strongly disagreed with this statement.

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Ques. 10 Employees in the bank give you prompt service.
Table no: 10
SCALE FREQUENCY PERCENTAGE

DISAGREE 5 10

UNCERTAIN 16 32

AGREE 27 54

STRONGLY AGREE 2 4

TOTAL 50 100

Mean=3.52

Standard deviation=0.735

60%
54%

50%

40%
32%
30%

20%

10%
10%
4%

0%
disagree uncertain agree strongly agree

INTERPRETATION
Most of the respondents agreed with this statement. According to my analysis, employees in KCC
Bank give prompt service. Among the total respondents agreed respondents were 27 and strongly
agreed were 2. 16 people were neutral and 5 disagreed. There was no respondent who strongly
disagreed with this statement.

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Ques.11 Employees in the bank is always willing to help you.
Table no: 11

SCALE FREQUENCY PERCENTAGE

UNCERTAIN 12 24

AGREE 29 58

STONGLY 9 18
AGREE
TOTAL 50 100

Mean=3.94

Standard deviation=0.65
70%

60% 58%

50%

40%

30%
24%

20% 18%

10%

0%
uncertain agree strongly agree

INTERPRETATION

Employees in KCC bank are willing to help you. With this statement no one disagreed or strongly
disagreed. Strongly agreed were 9 people i.e. 18% respondents strongly agreed, 29 people agreed
i.e. 58% respondents agreed and 24% respondents were neutral.

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40
Ques.12 Employees in the bank is never too busy to respond to your request.
TABLE NO: 12
SCALE FREQUENCY PERCENTAGE
DISAGREE 1 2
UNCERTAIN 11 22
AGREE 27 54
STRONGLY AGREE 11 22
TOTAL 50 100

Mean=3.96
Standard deviation=0.72

60%
54%

50%

40%

30%
22% 22%
20%

10%
2%
0%
Disagree uncertain agree strongly agree

INTERPERTATION
Employees in KCC Bank ltd are never too busy to respond to your request. After analyzing this
statement I found that most of the respondents agreed with this statement. Among the total
respondents 22% strongly agreed and 54% agreed. 11 respondents were neutral and 1 respondent
disagreed. No one strongly disagreed.

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ASSURANCE DIMENSION OF SERVICE QUALITY(Question13 to 16)
Knowledge and courtesy of employees and their ability to inspire trust and confidence
Ques.13 The employees of the bank is trustworthy.
TABLE NO: 13
SCALE FREQUENCY PERCENTAGE

DISAGREE 4 8

UNCERTAIN 13 26

AGREE 28 56

STRONGLY AGREE 5 10

TOTAL 50 100

Mean=3.68
Standard deviation=0.767

60% 56%

50%

40%

30%
26%

20%

10%
10% 8%

0%
Disagree uncertain agree strongly agree

INTERPRETATION
The employees of the bank are trustworthy. According to my findings, 54% respondents agreed
that employees at KCC bank are trustworthy. 13% respondents were neutral and 8% respondents
disagreed with this statement.

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Ques.14 The behavior of employees in the bank instills confidence inyou.
TABLE NO: 14

SCALE FREQUENCY PERCENTAGE

DISAGREE 28 56

UNCERTAIN 4 8

AGREE 13 26

STRONGLY AGREE 5 10

TOTAL 50 100

Mean=2.9
Standard deviation=1.11

60%56%

50%

40%

30% 26%

20%

10% 8%

0%
Disagree uncertain strongly agree

INTERPRETATION
The behavior of employees in KCC bank instills confidence in you. Here analysis shows that most
of the people disagreed. Among the total respondents 28 respondents disagreed, 13 agreed and 5
strongly agreed. There was no respondent who strongly disagreed. This means 56% respondent
disagreed with this statement.

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Ques.15 You feel safe in your transactions withthe bank.
TABLE NO: 15

SCALE FREQUENCY PERCENTAGE

DISAGREE 5 10
UNCERTAIN 16 32
AGREE 23 46
STRONGLY AGREE 6 12
TOTAL 50 100
Mean=3.6
Standard deviation=0.83

50% 46%
45%
40%

35% 32%
30%
25%
20%

15% 12%
10% 10%
5%
0%

Disagreeuncertainagreestrongly agree

INTERPRETATION
With this statement most of the respondents agreed. Among the total respondents 23 agreed with
this statement and 6 strongly agreed. 32% respondents were neutral and 10% respondents
disagreed .But there no one who strongly disagreed.

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Ques.16 Employees in the bank has the knowledge to answer your questions.

TABLE NO: 16
SCALE FREQUENCY PERCENTAGE

DISAGREE 2 4

UNCERTAIN 9 18

AGREE 26 52

STRONGLY AGREE 13 26

TOTAL 50 100

Mean=4
Standard deviation=0.78
60%
52%
50%

40%

30% 26%

20% 18%

10%
4%

0%
Disagree uncertain agree strongly agree

INTERPRETATION
From my analysis I found that 54% respondents agreed that employees of KCC bank have
complete knowledge to answer their questions. 26% respondents strongly agreed to this statement
and only 4% disagreed. 18% neither agreed nor disagreed.

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EMPATHY DIMENSION OF SERVICE QUALITY (Question17 to 20):
Caring and individualized attention that firm provides to its customers.
Ques.17 The bank gives you individual attention.
TABLE NO. : 17

SCALE FREQUENCY PERCENTAGE

DISAGREE 26 52

UNCERTAIN 12 24

AGREE 10 20

STRONGLY 2 4
AGREE
TOTAL 50 100

Mean=2.76
Standard deviation=0.91

60%
52%
50%

40%

30%
24%
20%
20%

10%
4%

0%
disagree uncertain agree strongly agree

INTERPRETATION
KCC bank is not able to give individual attention to its customers as out of the total respondents
54% disagreed with this statement. 12% of the respondents were neutral and only 12% agreed and
2% strongly agreed. From this finding it can be concluded that it is unable to give individual
attention to its customers

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Ques.18 The bank has operating hours convenient to all its customers.

TABLE NO: 18

SCALE FREQUENCY PERCENTAGE

DISAGREE 2 4
UNCERTAIN 14 28
AGREE 27 54
STRONGLY 7 14
AGREE
TOTAL 50 100

Mean=3.76
Standard deviation=0.74

60%
54%

50%

40%

30% 28%

20%
14%

10%
4%

0%
disagree uncertain agree strongly agree14%

INTERPRETATION
KCC bank has operating hours convenient to all its customers. Out of 50 respondents, 27
respondents agreed with this statement and only 2 respondents disagreed. Also 7 respondents
strongly agreed that the bank has operating hours convenient to its customers.

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Ques.19 The bank has your interests best at heart.

SCALE FREQUENCY PERCENTAGE

STRONGLY 3 6
DISAGREE
DISAGREE 5 10
UNCERTAIN 10 20

AGREE 25 50

STRONGLY AGREE 7 14
TOTAL 50 100

Mean=3.56
Standard deviation=1.05

60%
50%
50%

40%

30%

20%
20%
14%
10%
10% 6%

0%
Strongly disagree uncertain agree strongly agree
disagree

INTERPRETATION
KCC bank has your best interests at heart. Here analysis shows that 25 respondents agreed and 7
respondents strongly agreed with this statement. 20% were neutral and the rest disagreed and
strongly disagreed.

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Ques.20 The employees of the bank understands your specific needs.
TABLE NO: 20
SCALE FREQUENCY PRECENTAGES

DISAGREE 5 10

UNCERTAIN 21 42

AGREE 20 40

STRONGLY AGREE 4 8

TOTAL 50 100

Mean=3.5
Standard deviation=0.814

45% 42%
40%
40%

35%

30%

25%

20%

15%
10%
10% 8%

5%

0%
Disagree uncertain agree strongly disagree

INTERPRETATION
Employees of KCC bank understand specific needs. With this statement most of the respondents
were neutral. Among the total respondents 20 respondents agreed and 4 respondents strongly
agreed. 5 respondents disagreed with this statement.

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6.1 MEASURING SERVICE QUALITY DIMENSIONS:
Measuring the quality of a service can be a very difficult exercise. Unlike product where there are
specific specifications such as length, depth, width, weight, and color etc. a service can have
numerous intangible or qualitative specifications.
Parasuraman, Zeithaml, and Berry (1985) provide a list of determinants of service quality: access,
communication, competence, courtesy, credibility, reliability, responsiveness, security,
understanding, and tangibles. A total of five consolidated dimensions of service quality are:
Tangibles (ques.1 to 4) - physical facilities, equipments and appearance of personnel.
Reliability (ques.5 to 8) - Ability to perform the promised service dependably and accurately.
Responsiveness (ques.9 to 12) – Willingness to help customers and provide prompt services.
Assurance (ques.13 to 16) – (including competence, courtesy, credibility and security)
Knowledge and courtesy of employees and their ability to inspire trust and confidence.
Empathy (ques.17 to 20) – (including access, communication and understanding the customer)
Caring and individualized attention that firm provides to its customer.
In order to calculate which dimension of service quality is performing well, a sample of the
questions are used in the questionnaire. Using the questionnaire, obtain the score for each of the 20
statements. After analysis of the data, Overall score to each statement is given on a scale of 1 to 5
i.e. 1 is given to strongly disagreed i.e. the lowest score, then 2= disagreed, 3= uncertain, 4=
agreed and 5= strongly agreed.
Sum the score for each dimension of service quality to obtain a final score which tells which
dimension is performing well and which dimension needs improvement

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6.2 The scores for each dimension are summed up and a final score is obtained:
SERVICE QUALITY DIMENSION POINTS

1.TANGIBILITY(1 TO 4) 11

2.RELIABILITY (5 TO 8) 13.5

3.RESONSIVENESS (9 TO 12 ) 16

4.ASSURANCE (13 TO 16) 14

5.EMPATHY (17 TO 20 ) 13

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CHAPTER -7: FINDING AND
SUGESSTIONS

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52
7.1 FINDINGS OF THE STUDY:
 The Reliability dimension of service quality is better as compared to empathy and
tangibility(13.5). Still the score is low. For most services, customer‟ s perceptions of
whether the service has been performed correctly, and not provider-established criteria, are
the major determinants of reliability. Customers of the bank hesitate to rely on the bank.
Whenever they have a problem, the bank shows sincere interest in solving it but the
services are not performed by a certain time as promised. The employees should take this
problem seriously and take steps to remove this.
 The score of Tangibility dimension of service quality of KCC bank is the lowest(11). The
service quality factor tangible is defined by whether the physical facilities and materials
associated with the service are visually appealing at the bank. These are all factors that
customers notice before or upon entering the bank. Customer expectations regarding visual
appealing of KCC is very high. From my study I found that Physical facilities and modern
looking equipment are not sufficient in KCC bank. Respondents were uncertain about the
neat appearance of the reception desk employees. So they should work on that and try to
fulfill the gap.
 As score for Assurance is at second place after responsiveness(14), so the customers of
KCC bank are very confident and feel safe while transacting with the bank. Moreover the
enough to answer all the questions employees of the bank have proved to be trustworthy.
Employees are also educated enough to answer all the questions.
 According to my findings, the score of Empathy is not satisfactory but not unsatisfactory
also(13). KCC bank is unable to give individual attention to its customers and is unable to
understand specific needs of its customers. But still bank has taken steps to satisfy its
customers by keeping operating hours convenient to its customers and keeping their
interest best at heart.
 In KCC bank, the score of Responsiveness is highest so they are focusing on prompt
service, employees are willing to help the customers and say the exact time when the
services will be performed(16). Employees at bank give their customers first preference
and are always ready to help them. Overall KCC bank‟ s responsiveness dimension of
service quality is the highest.
 According to the customer perception, KCC bank is highly responsive. Customers are
assured while transacting with the bank. The reliability dimension is lower than the first to
dimension. They feel that the bank is unable to give them individual attention and its
equipments are not modern and sufficient for the bank.
 There is not much gap between all the dimensions, this shows that KCC BANK is a better
service provider in all the dimensions i.e. reliability, assurance, tangibility, responsiveness
and empathy. As a result of which, the customers are satisfied with the service offered by
KCC bank.

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SUGGESTIONS:
 Reliability is an obvious place to start. Customers of the bank want to know their
resources are safe and within trustworthy institutions. A way to ensure this peace of
mind would be to take steps to ensure bank employees are well trained, so each bank
associate is able to offer complete and comprehensive information at all times.
Consistent policies combined with a knowledgeable staff will foster a high degree of
institutional cohesion and reliability.
 Responsiveness, again when associated with a well-trained staff and timely answers to
service-related questions, would make significant inroads into causing KCC bank be
regarded as responsive. Staff should be encouraged to present relevant options to
banking customers in a manner that does not resemble salesmanship so much as a
desire to serve.
 Intangibles please customers just as much as tangibles in the banking industry. People
tend to visit the same branch of a bank over and over again. Usually, this is a location
close to their home or their workplace. It is natural that customers become comfortable
and habituated to these branch banks, for the same reason they develop familiarity with
a neighborhood supermarket or convenience store. It makes sense that bank employees
would be encouraged to learn to recognize these regular customers, learn their names,
and begin to identify their basic service requirements.
 Learning to understand customers‟ needs will allow bank associates to offer enhanced
services, perhaps lowering customers‟ banking costs and increasing their investment
potential. This could also open up the possibility of increased profits for banks, for
when perceived as more service and customer oriented, they will, in effect, become a
useful and pleasant way to “shop.”
 Keeping the bank with up-to-date technologically are important factors. Modern
equipments, new improved technology should be replaced with the old ones. If the staff
inside is pleasant and well-informed, in an aesthetically pleasing environment, then
customer satisfaction will be high.

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54
CHAPTER -8: CONCLUSION

Page
55
CONCLUSION
Based on the study conducted it can be concluded that responsiveness, assurance and reliability are
the critical dimensions of service quality of KCC bank and they are directly related to overall
service quality. The factors that may delight customers tend to be concerned more with the
intangible nature of the service, commitment, attentiveness, friendliness, care, and courtesy.

The employees give prompt services, always are ready to answer the questions and are
trustworthy. The main sources of dissatisfaction appear to be cleanliness, up to date technology
modern equipments, and neatly dressed up employees. The Tangibility dimension of service
quality of KCC bank is highly disappointing and serious steps are needed to be taken to enhance
this dimension. Customers of the bank are dissatisfied with the empathy dimension. To satisfy
these customers, the management can take some attempts, noted earlier as recommendations.

The study brings about the areas which require urgent attention of the employees, the
management, and the policy makers of the industry. These are areas in which customers are hugely
dissatisfied with the services of the banks against their expectation. This high degree of
dissatisfaction resulting from the services received clearly questions the design of services or
subsequent response of the bank employees. These limitations are too serious to be avoided as
these question the front-line people dealing with the customers and the approach of the
management in taking customers seriously.

The management should understand the benefits of service quality. It include increased customer
satisfaction, improved customer retention, positive word of mouth, reduced staff turnover,
decreased operating costs, enlarged market share, increased profitability, and improved financial
performance. In the days of intense competition, superior service is the only differentiator left
before the banks to attract, retain and partner with the customers. Superior service quality enables a
firm to differentiate itself from its competition, gain a sustainable competitive advantage, and
enhance efficiency. Thus, improving service quality leads to the customer satisfaction and,
ultimately, to customer loyalty.

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56
REFERENCES AND BIBLOGRAPHY

Page
57
References:

 Kotler Philip, marketing management, (Pearson education, 12th edition).

 Malhotra K. Naresh, marketing research (An applied orientation), Research design,
(Prentice hall of India pvt. 5th edition).
 Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing
Integrated customer Focus across the Firm” (4th Edition).
 Tarun Sharma : Branch Manager KCC Bank Sansal
 http://www.kccb.in
 Mengi, P. (2009). Customer satisfaction with service quality: An empirical study of public and private
sector banks. IUP Journal of Management Research, 8(9), 7.
 Kumbhar, V. (2011). Service quality perception and customers’ satisfaction in
internet banking service: a case study of public and private sector banks.
 Lenka, U., Suar, D., & Mohapatra, P. K. (2009). Service quality, customer satisfaction, and
customer loyalty in Indian commercial banks. Journal of Entrepreneurship, 18(1), 47-64.

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loan issues

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Five types of loan
.personal loan

.business loan

.agriculture loan

.education loan

.home loan

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 :HOME LOAN
Consumer loan granted for personal (medical), family
(education, vacation), or household (extension, repairs,
purchase of air conditioner, computer, refrigerator, etc.)
use, as opposed to business or commercial use. Such
loans are either unsecured, or secured by the asset
purchased or by a co-signor (guarantor). Unsecured loans
(called signature loans) are advanced on the basis of the
borrower's credit-history and ability to repay the loan from
personal income. Repayment is usually through fixed
amount installments over a fixed term. Also called
consumer loan.

:BUSINESS LOAN
Business loan. A business loan is a loan specifically
intended for business purposes. As with all loans, it
involves the creation of a debt, which will be repaid with
added interes.

:Agriculture loan

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An agriculture loan is an overdraft facility which could be used to
meet the cost of farming, cultivation and working capital
activities for agri-business and associated activities. This loan
could also be used for buying cattle, purchase of equipment for
farming and irrigation and other agricultural requirements.
Agriculture loans are generally low interest loans that farmers can

avail to run their farming business more efficiently.

:EDUCATION LOAN

An education loan is a loan taken to help pay for an education,

usually at a college or trade school, but may also be used to pay
for private schools or prep schools as well. These loans are
available in several different types.
These are student loans, parent loans and private loans. Loans are
also either guaranteed or unguaranteed. Student and parent loans
are most likely to be guaranteed by the government, though many
agencies work for the government in this respect. Unguaranteed
or unsubsidized loans are usually from private lenders only, and
usually can only be obtained if one has a good credit score or
significant equity.
The student loan is usually the best choice education loan for a
student whose parents cannot pay for his or her education. While
the student remains in school, interest on this type of loan accrues
and is paid for by the government. When the student stops

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attending school, the loan is usually paid off in payments. These
payments can be quite large if the loan is large, so students should
borrow only what they need.

:Home loan

A home loan can come in many flavors, the specifics of which will
have a major impact on a large chunk of the buyers life.
Choosing an adjustable or fixed rate, extending the loan for ten,
fifteen, or even thirty years, and determining just how much
money to invest in the down payment are all critical decisions.

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ANNEXURES

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 Questionnaire

Service quality of KCC bank questionnaire

DEMOGRAPHIC INFORMATION

Name:

Age:

Educational qualification:

QUESTIONS Strongly Disagree Neither Agree Strongly

disagree agree or
agree
disagree
1. KCC Bank has modern
looking equipment.

2. The bank’s physical

features are visually
appealing.

3. The bank’s reception

desk employees are neat
appearing.

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4. Materials associated with
the service (such as
pamphlets or statements)
are visually appealing.

5. When the bank promises

to do something by a
certain time, it does so.

6. when you have a

problem, the bank shows a
since interest in solving it.

7. The bank performs the

service right the first time.

8. The bank insists on error

free records.
9. Employees in the bank
tell you exactly when the
service will be performed.
10. Employees in the
bank give you prompt
service.

11. Employees in the bank

are always swilling to help
you.

12. Employees in the bank

are never too busy to
respond to your request.

13. The employees of the

bank are
Trustworthy.

14. The behavior of

employees in the bank
instills confidence in you.

15. You feel safe in your

transaction with the bank.

16. Employees in the bank

have the knowledge to
answer your questions.

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17. The bank gives you
individual attention.

18. The bank has operating

hours convenient to all the
customers.

19. The bank has yours best

interest at heart.

20. The employees of the

bank understand your
specific needs.

Thank you for your participation.

Your candid input and time are appreciated.

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